8-K

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                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    Form 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                Date of Report (Date of earliest event reported)
                               September 12, 1997

                         First Alliance Mortgage Company
             (Exact name of registrant as specified in its charter)

       California                   33-99604-06                 95-2944875
(State or Other Jurisdiction)       (Commission               (I.R.S. Employer
    of Incorporation)               File Number)             Identification No.)

177305 Von Karman Avenue
  Irvine, California                                              97614-6203
 (Address of Principal                                            (Zip Code)
  Executive Offices)

        Registrant's telephone number, including area code (714) 224-8400

                                    No Change
          (Former name or former address, if changed since last report)



Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

(a)   Not applicable

(b)   Not applicable

(c)   Exhibits:

        8.1     Tax Opinion and Consent of Arter & Hadden

        23.1    Consent of Coopers & Lybrand  L.L.P.,  
                independent  auditors  of MBIA Insurance Corporation




                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                             FIRST ALLIANCE MORTGAGE COMPANY, as
                                             Company

                                             By:      /s/ Brian Chisick
                                                --------------------------------
                                                Name:  Brian Chisick
                                                Title: President

Dated:  September 12, 1997



                                  EXHIBIT INDEX

    Exhibit No.                    Description                          Page No.
    -----------                    -----------                          --------

        8.1       Tax Opinion and Consent of Arter & Hadden

       23.1       Consent of Coopers & Lybrand L.L.P., 
                  independent auditors of MBIA Insurance Corporation

EX-8.1

                                                                     EXHIBIT 8.1

                               September 12, 1997

         Re:      First Alliance Mortgage Company
                  First Alliance Mortgage Loan Trust 1997-3
                  Registration Statement on Form S-3 No. 33-99604

Ladies and Gentlemen:

         We have  acted as  counsel  for  First  Alliance  Mortgage  Company  in
connection with the preparation and filing of the registration statement on Form
S-3 (such registration statement,  the "Registration  Statement") filed with the
Securities  and Exchange  Commission  pursuant to the Securities Act of 1933, as
amended (the "Act"),  in respect of First  Alliance  Mortgage  Loan Asset Backed
Certificates,  Series 1997-3 (the  "Certificates").  Our advice formed the basis
for the  description  of federal  income tax  consequences  appearing  under the
heading "Certain Federal Income Tax  Consequences" in the prospectus  supplement
contained in the  Registration  Statement.  Such description does not purport to
discuss  all  possible  federal  income tax  consequences  of an  investment  in
Certificates but with respect to those tax consequences which are discussed,  it
is our opinion that the description is accurate.  In addition,  assuming (i) the
REMIC  election  is made,  (ii) the  Pooling and  Servicing  Agreement  is fully
executed,  delivered and  enforceable  against the parties thereto in accordance
with its terms, (iii) the transaction  described in the prospectus supplement is
completed on substantially the terms and conditions set forth therein,  and (iv)
continuing  compliance  with the  Pooling  and  Servicing  Agreement,  it is our
opinion that,  for federal  income tax purposes,  the Trust will be treated as a
"REMIC" (as defined in the Code), each Class of the Offered Certificates will be
treated as "regular interests" in the REMIC and the Class R Certificates will be
treated as the sole "residual interest" in the REMIC.

         We hereby  consent  to the  filing of this  letter as an Exhibit to the
Registration  Statement  and to the  reference to this firm in the  Registration
Statement and related  prospectus  supplement under the heading "Certain Federal
Income Tax Consequences."

                                                 Very truly yours,

                                                 /s/ Arter & Hadden
                                                     Arter & Hadden

EX-23.1

                       CONSENT OF INDEPENDENT ACCOUNTANTS

We consent to the  incorporation  by reference in this Prospectus  Supplement of
our report dated February 3, 1997, on our audits of the  consolidated  financial
statements of MBIA Insurance  Corporation  and  Subsidiaries  as of December 31,
1996 and 1995 and for each of the three years in the period  ended  December 31,
1996. We also consent to the reference to our firm under the caption  "Report of
Experts".

                                                /s/ Coopers & Lybrand L.L.P.
                                                Coopers & Lybrand L.P.P.

September 12, 1997
New York, New York